Crude oil steady as week draws to a close

12 March 2010

Written by Kim Bardsley

Crude oil prices were little changed on the New York Mercantile Exchange this morning (March 12th), hovering above $82 (£54) a barrel and set for a second consecutive week of gains.

Although fuel inventory reports this week showed continual demand weakness in the US, markets were buoyed by the news that China registered its second-highest daily average crude imports in February.

However, with this demand report following on the heels of government data showing that inflation rose to a 16-month high in February, there are mounting concerns that China will now try to restrict growth.

Despite this, trader drew optimism from events in China this week as a tightening of fiscal policy may promote long-term stability in crude, heating oil and other energy products.

Speaking to Reuters, Ben Westmore, a commodities analyst at the National Australia Bank, said: "By tightening they are lowering the probability that the economy overheats, and that gives you a more stable outlook for energy demand over coming years."

Click here for a home heating oil quote